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GM denies Chrysler merger talks

General Motors says a report that it and Chrysler have restarted talks to combine the two ailing automakers is untrue.

Thu., Dec. 18, 2008

DETROIT–General Motors says a report that it and Chrysler have restarted talks to combine the two ailing automakers is untrue.

The Wall Street Journal, citing people familiar with the discussions, said Thursday that talks about a combination have been rekindled after Cerberus Capital Management LP, the majority owner of Chrysler LLC, signaled it is willing to part with some of its stake in the automaker.

Spokesman Tony Cervone says GM's stance on the merger talks has not changed since it suspended them when it announced third-quarter earnings in November.

General Motors Corp. and Chrysler had been in talks earlier this year to combine in order to survive the recession and slowing U.S. sales, but financing emerged as one of the biggest obstacles.

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